May 05, 2013

PLDT media business remains insignificant contributor to profit

Yoshio Takahashi, assistant vice president of Moody’s, said that PLDT’s media business would remain a insignificant contributor to the company’s profitability over the next two to three years. Revenues from PLDT’s TV business accounted for about 2% to 3% of the total group revenues last year.

The analyst said the PLDT Group is strategically increasing its investment in the media business to strengthen its ability to deliver multi-media content through its broadband and mobile networks.

Meanwhile, Moody’s said the decision of PLDT to sell its entire stake in business process outsourcing (BPO) unit SPi Global Holdings Inc. to CVC Capital Partners’ Asia Outsourcing Gamma Ltd for over $300 M and reinvest $40 M for a 19.7% interest in AOGL is credit positive.